South Korea on Tuesday doubled a planned economic rescue package to 100 trillion won (80 billion dollars) to help companies affected by the Coronavirus and support stock markets and bonds that were falling apart.
The package includes 29.1 trillion won in loans to small and medium-sized companies, and 20 trillion won for purchasing commercial bonds and securities from companies facing a credit crisis, President Moon Jae-in said during an emergency economic meeting.
This comes after similar steps from governments and central banks around the world at a time when the global economy is suffering under the pressure of public closures announced by countries to contain the spread of Corona.
“We will ensure that companies do not go bankrupt due to Covid-19 shocks … Natural companies that are competitive will never close because of a temporary lack of liquidity,” Moon said at a meeting with finance officials and Central Bank of Korea Governor Lee Joo Yeol.
It is worth noting that, as part of the bailout package, the Financial Services Commission announced a 10.7 trillion won facility to stabilize stock markets, and will also launch a facility to purchase bonds in April funded by 84 institutions, including the Bank of Korea, commercial banks and insurance companies.